Algeria plans first wealth tax to cope with financial pressure

Reuters Staff

ALGIERS, Sept 27 (Reuters) - Algeria will implement a wealth
tax for the first time next year as part of measures aimed at
securing new sources of finance after a sharp fall in energy
earnings, Prime Minister Ahmed Ouyahia said on Wednesday.

State finances of the OPEC member North African nation have
been significantly hit after a more than 50 percent drop in oil
and gas revenue.

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Oil and gas account for 60 percent of the state budget and
95 percent of total exports.

That has forced the government to consider long-delayed
reforms, including turning to Islamic financial services and
developing the country's stock market, which now has a low level
of liquidity.

Authorities have also started reducing public spending and
have set import restrictions in a bid to cut the value of goods
shipped from abroad.

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Ouyahia said the implementation of the wealth tax from early
2018 would affect about 10 percent of the country's 41 million
people.